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Forget Australia and New Zealand Banking Group and snap up these high-yielding dividend shares

Although the Australia and New Zealand Banking Group (ASX: ANZ) dividend is one of the biggest yields available to investors on the market at present, I believe the proposed $6.2 billion bank levy could put it in danger of a cut in the future.

Because of this I think income investors should look beyond ANZ and the rest of the big four banks for dividends.

Instead, I would suggest investors consider these dividend shares:

Dicker Data Ltd (ASX: DDR)

This founder-led wholesale computer hardware company’s shares currently provide one of the most generous yields on the market. According to its most recent earnings release, management plans to pay a fully franked 16.4 cents per share dividend this year. At the current share price this equates to a whopping yield of 7.5%. Another bonus for income investors is that Dicker Data pays its dividends in quarterly instalments.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is the name behind leading pharmacy retail brands such as Amcal and Chemist King. Despite the weak retail environment, I was very pleased to see that Sigma-branded pharmacies recently reported an 8.2% increase in its like-for-like sales. This helped the company to deliver a 13% jump in full-year net profit and increase its dividend. At present Sigma’s shares provide a trailing fully franked 4.5% dividend. I expect more of the same in FY 2017, especially with its online China-based Amcal store performing above expectations.

WAM Capital Limited (ASX: WAM)

I think WAM Capital is one of the best dividend shares on the Australian share market. The listed investment company has grown its dividend for eight years in a row and looks likely to do the same this year thanks to the strong performance of its portfolios. At the current share price WAM Capital provides investors with a trailing fully franked 6.4% dividend. Not only does this smash the market-average, but it is also a superior yield to that on offer with ANZ.

This fourth dividend share could be the best of the lot. Its cheap price, huge yield, and strong international growth prospects make it a great option for income investors in my opinion.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Dicker Data Limited. Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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